Forex
Gold Price Falls as US Dollar Firms Ahead of PPI Release
The price of gold (XAU/USD) slipped on Thursday as the US Dollar steadied ahead of the US Producer Price Index release at 12:30 GMT. The metal was trading near $4,383 after touching an intraday high of $4,434.
The US Dollar Index (DXY) hovered around 98.90 following a low of 98.71. Markets are focused on whether producer inflation re-accelerates in August, with headline PPI forecast at 0.4% month-on-month after 0.0% in July and 5.3% year-on-year versus 4.7%; core PPI is seen at 0.3% MoM from 0.2% and 4.6% YoY from 4.2%.
Rising oil prices have added to inflation concerns, and the CME FedWatch Tool shows a 62% implied chance of a Federal Reserve rate rise at the September 15-16 meeting.